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RETAIL MANAGEMENT
SYSTEM IN MIS
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• A retail chain differs from other industries by nature of its
number of locations.
• A retail industry has sales from a large number of locations.
Each store requires an inventory control system, a Point of
Sales system and an accounting system (may be also a
production system)
Introduction
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Vendor Managed Inventory (VMI)
VMI is a continuous replenishment program in which
the retailer provides the supplier with detailed information to
allow the supplier to manage and replenish product at thestore or warehouse level
– Benefits of VMI
• Solidified customer-vendor relationships
• Reduced shipping costs and lead time
• Fewer human errors
• Improved service levels
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Efficient Consumer Response (ECR)
Programs that companies need to have in place are:
Category management (i.e. managing a group of products as
strategic business units within each store)
Continuous replenishment program (CRP)
Further support is needed of the following technologies:
Barcodes / Scanners
Electronic Data Interchange (EDI)
Computer aided ordering (CAO)
Cross docking / direct store delivery
Activity based costing
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Collaborative Planning, Forecasting andReplenishment (CPFR)
CPFR allows cooperation across the supply chain, using a
set of processes and technology models.
Providing dynamic information sharing and integrating both demand and supply
side processes, for effectively planning, forecasting and replenishing customer
needs through the total supply chain.
Advantages of CPFR:
Increased responsiveness
Product availability assurance
Optimized inventory and associated costs
Increased revenues and earnings
Improved relationships with trading partners
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Electronic marketplaces
• A distinction can be made between Open exchanges (accessible for everyone) and
Private exchanges (only for members)
• An e-marketplace can provide a platform for:
– Core commerce transactions which can automate and streamline the entire
requisition-to-payment online
– A collaborative network for production design, supply chain planning, optimization
and fulfillment process
– Industry wide product information that is aggregated into a common classification
and catalogue structure
– An environment in which sourcing, negotiations and auctions can take place in real-
time
– An online community for publishing and exchanging industry news, information and
events
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Radio frequency Identification Detection
• RFID is a term for technologies that use radio waves to automatically identify.
• Auto-ID Center is developing an open global network (a layer on top of
internet) that can identify anything, anywhere, automatically.
• This network will give companies near perfect supply chain visibility
• Also, if widely adopted the network could:
▫ eliminate human error from data collection
▫ reduce inventories
▫ keep product in stock
▫ reduce loss and waste
▫ free up staff to perform more value added functions
▫ improve safety and security
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Supply chain strategy trends
The four major developments show how the landscape of the traditional
retail buyer has changed
Advanced systems will allow them to optimize their supply chain operations
Future competition in retail will no longer be between individual companies,
rather it will be among clusters of companies
As research shows the development towards this kind of collaboration
can be troublesome
Trust between the partners, a long term commitment and a balanced
sharing of risks and rewards is required to be successful
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